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IJRMBSS I eISSN: 2321-9874 | ISSN: 2319-6998 I Vol. 2 I Issue 2 I Jun.

2014
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IMPACT OF SOCIAL MEDIA ON


CONSUMER BEHAVIOR
Dr. Sourbhi Chaturvedi*, Rahul Barbar**

Abstract:- With an estimated one-billion membership, social family and other important institutions. Culture is the
media websites have become a platform for corporations and most basic cause of a persons wants and behavior. Every
consumers to interact with each other in a lucid way. The group or society has a culture, and cultural influences on
impact of social media on consumer behavior has been buying behavior may vary greatly from country to
massive. The research aims to identify the factors influencing
country. Sub Culture is a group of people with shared
the impact of Social Media on Consumer Behavior on the basis
of demographic variables such as Age, Education etc. This value systems based on common life experiences and
survey also indicates how often are the social networking situations. Each culture contains smaller sub cultures a
websites accessed and to what use they are put by the users on group of people with shared value system based on
the basis of demographic variables. common life experiences and situations. Sub culture
Keywords: Consumer Behavior, Social Media includes nationalities, religions, racial group and
geographic regions. Many sub culture make up important
I. INTRODUCTION market segments and marketers often design products.
Consumer behavior is the study of individuals, And Social Class is almost every society has some form
groups, or organizations and the processes they use to of social structure; social classes are societys relatively
select, secure, and dispose of products, services, permanent and ordered divisions whose members share
experiences, or ideas to satisfy needs and the impacts that similar values, interests and behavior.
these processes have on the consumer and society. It Social Factors: - A consumers behavior also is
blends elements from psychology, sociology, social influenced by social factors, such as Groups. In groups
anthropology and economics. It attempts to understand two or more people interact to accomplish individual or
the decision-making processes of buyers, both mutual goals. A persons behavior is influenced by many
individually and in groups. It studies characteristics of small groups. Some are primary groups includes family,
individual consumers such as demographics and friends, neighbors and coworkers. Some are secondary
behavioral variables in an attempt to understand people's groups, which are more formal and have less regular
wants. It also tries to assess influences on the consumer interaction. These include organizations like religious
from groups such as family, friends, reference groups, and groups, professional association and trade unions.
society in general. In a consumer buying behavior, the Family: - Family members can strongly influence
customer plays three distinct roles of user, payer and buyer behavior. The family is the most important
buyer. Consumer behavior is very difficult to predict, consumer buying organization society and it has been
even for experts in the field. It is influenced by internal researched extensively. Marketers are interested in the
conditions such as demographics, psychographics roles, and influence of the husband, wife and children on
(lifestyle), personality, motivation, knowledge, attitudes, the purchase of different products and services.
beliefs, and feelings. Psychological factors include an Roles and Status: - A person belongs to many groups,
individuals motivation, perception, attitude and belief, family, clubs, and organizations. The persons position in
while personal factors include income level, personality, each group can be defined in terms of both role and status.
age, occupation and lifestyle. Behavior can also be
affected by external influences, such as culture, sub- Personal Factors:-
culture, locality, royalty, ethnicity, and family, social Age and Life cycle Stage: - People change the goods
class, past experience reference groups, lifestyle, and and services they buy over their lifetimes. Tastes in food,
market mix factors. clothes, furniture, and recreation are often age related.
Cultural Factors: - Cultural factors are divided into Buying is also shaped by the stage of the family life cycle.
three sub-factors i.e. Culture, Sub Culture and Social Occupation: - A persons occupation affects the goods
Class. Culture is the set of basic values perceptions, and services bought. Blue collar workers tend to buy more
wants, and behaviors learned by a member of society from rugged work clothes, whereas white-collar workers buy
----------------------------------------------------------------- more business suits. Thus, computer software companies
will design different products for brand managers,
* Professor-LNCT-MER Dept. so_1919@yahoo.com accountants, engineers, lawyers, and doctors.
** Student, MBA, SVITS Indore,
Economic situation:-A persons economic situation
mailrahul_y2j7@yahoo.com will affect product choice
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Life Style: - Life Style is a persons Pattern of living, hobbies, shopping, support etc) interest (Food, fashion,
understanding these forces involves measuring family recreation) and opinions (about themselves,
consumers major AIO dimensions i.e. activities (Work, Business, Products)
Personality and Self concept:-Each persons distinct existing customers. Before buying a product, every
personality influences his or her buying behavior. consumer wants to make sure that the product is the best
Personality refers to the unique psychological in its class, and offers good value for money.
characteristics that lead to relatively consistent and lasting Advertisements don't always give a fair idea, as almost
responses to ones own environment. every company claims its product to be the very best. This
Psychological Factors:- is where social media plays an important part in defining
consumer behavior. People who have already used the
Motivation :-Motive (drive) a need that is sufficiently
product describe their experience - its strengths,
pressing to direct the person to seek satisfaction of the
weaknesses etc., and this helps in disseminating
need
information. People are more likely to trust those who
Perception :-The process by which people select, give an impartial account of a product rather than a
Organize, and interpret information to form a meaningful celebrity who is paid to endorse the product. Social media
picture of the world. enables people from all over the world to form a
Learning:-Changes in an individuals behavior arising community of consumers, giving them the power to harm
from experience. or herald a company.
Beliefs and attitudes :-Belief is a descriptive thought Consumers today serve as retailers on eBay, media
that a person holds about something. Attitude, a Persons producer-directors on YouTube, authors on Wikipedia,
consistently favorable or unfavorable evaluations, and critical reviewers on Amazon; they do all of this and
feelings, and tendencies towards an object or idea more on Facebook and MySpace. And they no longer
Social Media can be defined as a group of Internet- require their computer to do so through high-tech mobile
based applications that is build on the ideological and phones, portable computers and portals such as Twitter,
technological foundations of the Web and that allow the real-time information exchange has become an integral
creation and exchange of user-generated content. Social element of consumer behavior anywhere and anytime.
media is ubiquitously accessible, and enabled by scalable User-generated content has become a mass phenomenon,
communication techniques. As social media become more with Facebook, MySpace, YouTube, Wikipedia, and
and more prevalent, connecting people and facilitating the Twitter. From the consumers viewpoints, its convenient
exchange of information, consumer behavior is shifting. and easy to get the desired information from the enormous
Through social media, consumers now can easily watch database of social media. Only by a few clicks, users can
an interesting advertisement on YouTube, while posting collect nice photos on Flickr, watch the latest drama on
their own opinions on Twitter and sharing it with friends YouTube or download the PDF file of an engaging novel
on Facebook. Therefore, its necessary for the service from BookCrossing. The best of all is that its all for free!
providers to understand how social media is affecting Therefore, its quite understandable that consumers would
current consumers and how they are going to react. In this search for freebies online first rather than directly go to
new era, one-way messages to the customers are simply online or physical shops. For the retailers, the good news
not enough. Todays customer can be heard loud and is that its possible for a product or service becomes
clear. The customers voice can be heard everywhere, popular overnight on social media, which reduces
including review websites, blogs, YouTube videos, tremendous marketing and promotion cost. However, the
Tweets, Facebook updates, and other social media outlets. downside is that it becomes more difficult for retailers to
And the companies have to pay attention because social manage the copyright-protected materials sharing
media is changing the way customers do business. Its between the uncontrollable users.
influencing the entire buying process. If they dont pay Some of the main changes in consumer behavior as a
attention, they risk losing customers. result of social media are that consumers have a bigger
The advent of social media has opened a new avenue of voice these days. This is due to the fact that Social Media
marketing for corporations. The traditional 'word-of- is becoming a credible information provider for
mouth' publicity has been replaced by the 'word-of-web', consumers. Consumers now own increasingly
as consumers are increasingly referring to social media unrestricted time and space for sharing and possess access
sites before making a purchase, greatly influencing to timely and frequent updates as per the change in the
buying behavior. Though most companies these days market. Due to the transparency and the reliability of
have an official website which has complete information social media, consumers became more and more powerful
about their products, consumers usually engage with a than before. Most of the consumers would gather
company after reading reviews and feedback from information first on the social media before an important
purchasing. Plus, the ever-changing new technology, such
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Indian Journal of Research in Management, Business and Social Sciences (IJRMBSS) 108
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as smart phones, further enhanced this power, which time you arent seeing results, maybe its time to change
placed consumers in an advantageous position regarding your strategy.
purchasing. To deal with this situation, the retailers
should dump the past preconceptions about the consumers II. LITERATURE REVIEW
and the out-of-date marketing models. Instead, they have Malhotra et.al. (1997) provides guideline for the
to stand in the consumers shoes and try to engage as designing of Virtual Community. The community was
many people as possible in an interactive way. studied through initiation, adoption, and successive
Customers are being influenced by social media and the design changes. Issues and conflicts that arise in the
companies want them to be influenced positively, they course of life of a virtual community were also traced. The
need to build a strong social media presence. That doesnt result of the study led to the creation of a leading website
mean spamming a bunch of people to build your followers that has attracted more than 300,000 visitors since its
list. Building a strong social media presence requires inception. Typaldos (2000) has mentioned 12 elements of
consistency. It requires actually engaging with your target Virtual Communities namely Purpose, Identity,
demographic, building relationships that help you earn Reputation, Governance, Communication, Groups,
their trust and their business. And it requires having actual Environment, Boundaries, Trust, Exchange, Expression
goals and strategy for your social media campaign. and History. Maharag (2001) discovered that the Virtual
Know Your Segment -It is very essential for companies Community is a powerful medium for simulation and role
to get an insight into the demographics of a website play. Blanchard and Markus (2002) explore the concept
regarding the income-group, age-group, class, ethnicity, of virtual community in a newsgroup. The VC has two
etc. When you have this information, you can decide type of participation styles, active vs passive and public
whether putting yourself up on that website would be vs private. They also describe the behavioral processes
feasible for you or not. viz. exchanging support, creating identities and making
identifications, and the production of trust that contribute
Provide, Don't Sell-When you put your business on a
to the sense of virtual community.
social media site, the onus should be on engaging a
consumer in an open conversation. Some of the most Teo et,al.(2003) focuses on the virtual learning
popular websites, such as Facebook, allow you to create a communities. He examine the impact of information
business profile, with an option that users can become accessibility and community adaptively on the
'fans'. The more 'fans' you are able to create, better the sustainability of virtual learning communities. The results
dissemination of information related to your brand as each indicate that both information accessibility and
time they log on, they will be updated with all the activity community adaptively have significant effects on user
around your brand. It is important that you use social perceptions and behavioral intention. Koh and
media in such a way that helps you in brand building. Kim(2003) classified virtual communities as either being
When you build a strong foundation for your business, originated online or offline. The examples of on-line
and people are able to connect with you, it is very likely originated virtual communities are newsgroups, game
that sales would follow automatically. sites, and various e-commerce sites while the examples of
off-line originated virtual communities are class forums
Pay Attention to Consumers' Opinion, ideas,
in universities, on-line alumni associations. The intra-
feedback. The discussion between customers gives you
organizational or inter-organizational communities-of-
some information on what they are expecting from the
practice whose members knew one other and participated
brand. They can help with their opinion on how they
in face-to face interactions before the virtual community
perceive you as a company, and what improvements can
came into existence. They did the analysis of 172
be made to strengthen your brand. So, it is obvious that
members of 44 virtual communities and found that the
the current trends in social media marketing indicate that
sense of virtual community is affected by the enthusiasm
social media would be a force to reckon within the near
of the communitys leaders, off-line activities available to
future. The bottom line is that a strong social media
members, and enjoyability. These characteristics had a
presence can really make a difference to your business,
stronger impact for members of virtual communities that
and considering the fact that thousands of people are
originated on-line than for those in communities that
joining one or the other social networking site each day,
originated off-line.
it is imperative that corporations use this medium
effectively. Of course, social media marketing does take Ying-Feng Kuo(2003) discusses about service quality
time. You cant scrap everything after just a few days of Virtual Community. According to him in order to
without getting results. Social media marketing takes enhance satisfaction and loyalty of the users, the Virtual
months. Consumers wont alter their behavior overnight. Community websites needs to improve the dimension of
So, you need to give your social media marketing efforts online quality and information safety and also extra
time to start working. But if after a reasonable period of function and service should be provided. Gupta and
Kim(2004) investigated the factors which enhance
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Indian Journal of Research in Management, Business and Social Sciences (IJRMBSS) 109
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online customers relationship, commitment to the Virtual in the Netherlands (48 percent), India (52 percent),
Community from the balanced beliefs and feelings Mexico (50 percent) and Spain (50 percent).In India 55
perspective. They adapt the behavior model developed by percent of small companies compared to the global 40
Fazio et al. (1978) and examines the roles of beliefs and percent average had successfully found new customers
feelings of the customer in the formation of commitment through social networks and 32 percent of small firms
to a Virtual Community. This study then offers theoretical actively devote marketing budget to this activity
reasoning for the balanced effects of customers beliefs
and feelings on enhancing the commitment to the Virtual III. RATIONALE
Community. They collected data through online survey Social media has opened up a new opportunity, both for
on the website of Urii.com(A Korean online store that the business and consumers, to interact with each other on
caters to mothers in relation to baby-care needs.) .Their a real-time basis. With an estimated one-billion
findings show that attitude, beliefs(functional usefulness membership, social media websites have become a
and social usefulness), and feelings(pleasure) were platform for corporations and consumers to interact with
significant predicator of relationship commitment. each other in a lucid way. The impact of social media on
Gupta et, al. (2006) emphasis on the transformation consumer behavior has been massive, and this is one of
process of a Virtual Community member into an online the prime reasons why business houses are using it to
customer. It provide insights into the usefulness of VCs market their products extensively. Various industry
for commercial purposes apart from increasing sales. bigwigs have conducted researches and surveys to know
Their result indicates that attitude towards Virtual the impact of social media on consumer behavior, and it
Community significantly influences commitment to has been found that consumers would like to have an
Virtual Community. Attitude towards and Commitment interactive relationship with a company, so that they can
to Virtual community significantly influence loyalty to easily pass on feedback, suggestions, and complaints.
the vendor which influence intention to purchase from Given the nature of social media, anything positive or
vendor. Trusoy et, al.(2008) study the effect of word-of- negative-that is being said about your product or company
mouth (WOM) marketing on member growth at an is easily accessible to a global community of consumers,
Internet social networking site and compare it with which essentially means that your business and your
traditional marketing vehicles. According to them ,social marketing strategy can be hailed or harmed in a matter of
networking site rely upon user-generated content to hours. The individual consumers shopping behavior may
attract and retain visitors. They obtain revenue primarily be affected and changed by the emergence of social
from the sales of online display advertising and they networks. This is backed by the observation that
accumulate user information that may be valuable for numerous web-based social communities have allowed
targeted marketing purposes. They develop model for the consumers to share their personal experiences by writing
acquisition of new member through word of mouth. reviews, commenting and rating others reviews for many
Gianiodis (2010) investigate the affect of social years now. However, it also became clear that consumers
networking technology on firm opportunity recognition. are more likely to believe recommendations from people
They consider opportunity recognition as a meta- they know and trust, friends and family-members, rather
construct consisting of opportunity discovery and than strangers or recommender systems. This also
opportunity creation. They suggests that information explains that social networks are driving the increasing
technology can be used an enabler of opportunity volume of traffic to retail sites and may become the entry
recognition, as a mechanism to support and promote hub for ecommerce.
opportunity discovery, through viral marketing, and IV. OBJECTIVES
opportunity creation, through customer relationship
management. According to Regus (2010) Social To study the factors which influence the impact of
networking has become a mainstream business tool in Social Media on Consumer Behavior.
India with fully 52 percent of businesses having Does the factors influencing the impact of Social
successfully used social networks to win new business. Media on Consumer Behavior differ on the basis of
The most popular use of social networks is staying in demographic variables (Age/Education)?
touch with business contacts; with 58 percent of To compare the impact of Social Media on Consumer
respondents globally use these networks. Thakur (2010) Behavior on the basis of demographic variables
has revealed that social networking has finally become a (Age/Education) between different Social
mainstream business tool. This survey indicates that Networking Websites.
organizations who have not yet ventured into the world of
social networking may be missing out on sizeable V. RESEARCH METHODOLOGY
business opportunities. The highest level of new
The Study:
customer acquisition via social networking was reported
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It is an exploratory study to find out the factors have been used to illustrate the layout of the sample
influencing the impact of Social Media on Consumer population. The independent sample is being compared to
Behavior. The research aims to identify the factors measure the dependent variable impact of social media on
influencing the impact of Social Media on Consumer consumer behavior. The data was classified and tabulated
Behavior on the basis of demographic variables such as using MS-Excel. Also, an analysis of the data was done
Age, Education etc. And to compare the popularity using Mean and Standard Deviation.
between various Social Networking Websites such as Hypothesis
Google+, Orkut, Facebook, Twitter, Linkedin etc. This
Age:-
survey also indicates how often are the social networking
websites accessed and to what use they are put by the H01: There is no significant impact of Social Media on
users on the basis of demographic variables. Consumer Behavior on the respondents in the age group
of below 20 years and 21-40 years.
The Sample:
H02: There is no significant impact of Social Media on
A sample is a representative of the population. One of
Consumer Behavior on the respondents in the age group
the defining characteristics of the population is that they
of 21-40 years and above 41 years.
have access to social networking websites. The sample
size was 50 and all the respondents were a part of the H03: There is no significant impact of Social Media on
population being studied. The sample consists of Age and Consumer Behavior on the respondents in the age group
Education categories. Age is divided as Below 20 years, of above 41 years and below 20 years.
21-40 years and Above 41 years. Education is divided as Education:-
Under-Graduate, Graduate and Post-Graduate. H04: There is no significant impact of Social Media on
The Design: Consumer Behavior of the undergraduate and graduate
Dependent Variable: Impact of Social Media on respondents.
Consumer Behavior H05: There is no significant impact of Social Media on
Independent variable: Age and Education Consumer Behavior of the graduate and post-graduate
respondents.
Age/ Under- Graduate Post-
H06: There is no significant impact of Social Media on
Education Graduate Graduate
Consumer Behavior of the undergraduate and post-
Below graduate respondents.
20 yrs RESULT AND DISCUSSION
21-40 yrs Hypothesis Accepted
H01: There is no significant impact of Social Media on
Above Consumer Behavior on the respondents in the age group
41 yrs of below 20 years and 21-40 years.
Data Collection: Mean: Y1 (below 20) = 54.15385
Y2 (21-40) = 54.75
The data was collected through a self-developed
Std. dev: Y1 (below 20) = 6.269585
questionnaire which comprises of almost 15 questions.
Y2 (21-40) = 8.485281
The questions were based on nominal and interval scale.
Responses to all the questions were mandatory except the
Zcal= 0.4026 Zcal < Ztab
respondents name. The questionnaire was self-
administered, though the respondents were able to interact The null hypothesis is accepted at 5% level of
personally. For each statement of the questionnaire, the significance.
respondent was asked to indicate their perception. A 5- H05: There is no significant impact of Social Media on
point Likert Scale was used on which a score of 5 points Consumer Behavior of the graduate and post-graduate
was given for the answer Strongly Agree, 4 points was respondents.
given for the answer Partially Agree, 3 points was given Mean: Y1 (Grad) = 52.90909
for the answer Cant Say, 2 points was given for the Y2 (PG) = 54.15385
answer Partially Disagree and 1 point was given for the Std. dev: Y1 (Grad) = 1.414214
answer Strongly Disagree. Y2 (PG) = 8.485281
Data Analysis: Zcal= -1.04 Zcal < Ztab
On the data gathered, descriptive statistics including The null hypothesis is accepted at 5% level of
frequency analysis have been done to determine the significance.
demographics of the group sampled. Simple bar-diagrams
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Indian Journal of Research in Management, Business and Social Sciences (IJRMBSS) 111
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H06: There is no significant impact of Social Media on The null hypothesis is not accepted at 5% level of
Consumer Behavior of the postgraduate and significance.
undergraduate respondents EXPLANATION: There is a significance impact of
Mean: Y1 (PG) = 53.61538 Social Media on Consumer Behavior on the respondents
Y2 (UG) = 54.15385 in the group of undergraduates and graduates. The
Std. dev: Y1 (PG) = 8.485281 Consumer Behavior of the respondents in the group of
Y2 (UG) = 1.414214 undergraduates is more affected by social media.
Zcal= 0.814 Zcal < Ztab VI. CONCLUSION
The null hypothesis is accepted at 5% level of
significance. To study the factors which influence the impact of
Social Media on Consumer Behavior?
Hypothesis Rejected
Product reviews by friends and colleagues (Bar number
H02: There is no significant impact of Social Media on
4) along with the promotion of Cash On delivery/ Buy
Consumer Behavior on the respondents in the age group
after u Try service of a product (Bar number 5) on a
of 21-40 years and above 41 years.
social networking website are the major factors which
Mean: Y1 (21-40) = 54.75 influence the buying decision of a customer.
Y2 (above 41) = 49.22222
Std. dev: Y1 (21-40) = 8.485281
Y2 (above 41) = 2.12132
Zcal= 7.531 Zcal >Ztab 250
204203
185 187182 191196
The null hypothesis is not accepted at 5% level of 200 168 175 173 175
165
significance. 157 155164
EXPLANATION: There is a significance impact of 150
Social Media on Consumer Behavior on the respondents
100
in the age group of 21-40 years and above 41 years. The
Consumer Behavior of the respondents in the age group 50
21-40 years is more affected by social media.
H03: There is no significant impact of Social Media on 0
Consumer Behavior on the respondents in the age group 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
of above 41 years and below 20 years.
Mean: Y1 (above 41) = 49.22222 Do the factors influencing the impact of Social Media
Y2 (below 20) = 54.15385 on Consumer Behavior differ on the basis of
Std. dev :Y1 (above 41) = 2.12132 demographic variables (Age/Education)?
Y2 (below 20) = 6.269585 The respondents of age group of 21-40 years and the
Zcal= 5.82 Zcal > Ztab respondents falling in the category of Post-Graduates are
The null hypothesis is not accepted at 5% level of mostly influenced by Social Media in their buying
significance. decisions.
EXPLANATION: There is a significance impact of Age
Social Media on Consumer Behavior on the respondents 60

in the age group of above 41 years and below 20 years.


The Consumer Behavior of the respondents in the age 50

group below 20 years is more affected by social media.


40

H04: There is no significant impact of Social Media on 30

Consumer Behavior of the undergraduate and graduate


20
respondents
Mean: Y1 (UG) = 54.15385 10
Percent

Y2 (Grad) = 52.90909
0
Std. dev: Y1 (UG) = 1.414214 < 20 Years 21-40 Years >41 Years
Y2 (Grad) = 1.414214
Age
Zcal= 2.54 Zcal > Ztab

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an Internet Social Networking Site, Marketing
Department, Robert H. Smith School of Business
University of Maryland
[18] Typaldos, Cynthia(2000) ,The 12 Principles of
Collaboration, www.typaldos.com/12
principles.htm.

___________________________________________
AUTHORS
Dr. Sourbhi Chaturvedi
(Professor-LNCT-MER Deptt.)
Flat No-103, Aashiyana Enclave,
Add- 14 A/A Scheme No-54,
Indore-452010
so_1919@yahoo.com
Contact No-9826726091

Rahul Barbar
Student MBA
4th Sem, SVITS Indore.
Add- 245/1 Nayapura,
M.P (452001)
mailrahul_y2j7@yahoo.com
Contact No- 9926668554

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Indian Journal of Research in Management, Business and Social Sciences (IJRMBSS) 114

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